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Bristol-Myers Squibb Essay Michael ZouroudisCornerstone student in the College of Business AdministrationUniversity of Central FloridaOctober 15, 1999Table of ContentsSectionIntroduction/Executive Summary.3Background..4MarketingProduct/Service6Place/Distribution..7Promotion/Advertising.8Management /Human ResourcesTraining and Development9Compensation and Rewards.9Labor relations..10FinanceProfitability and Cash Flow.10Liquidity12Leverage/Capital Management.13Conclusion..13References..14Introduction and Executive SummaryThis document consists of an overall business review for the Pharmacuetical company Bristol-Myers Squibb. Although by no means a complete summary of their 1998 business dealings or stragety, it does give a nice overview of three of the most component and fundmentally sound aspects of any business, let alone a Fortune 500 business. This document starts by covering the Marketing aspect of Bristol-Myers Squibb. First covered is the most important structure of any company; its product. Inside is inf ormation on how they distribute their product, and where they distribute it to. Finally, we see how they promote their product, and which ways it is advertised. Management is the next topic of discussion. What style of management does Bristol-Myers Squibb conduct? The document talks about compensation given to their employees, and how the average employee is rewarded for acheving the unaverage level of excellence. Finally, the document focuses on Finance. It shows Bristol-Myers Squibb profits, it debts, how much money is invested in the company, and basically the direction that the Company is headed. Once again, this document is not nearly a complete breakdown of Bristol-Myers Squibbs 1998 business transactions. All this document is aiming for is to give an idea of the extreme complexity of the business world, understand(at least a little more) the strategy and competitiveness between companies, and maybe to enlighten a few on how much time and effort goes into such a giant of a company like this. Enjoy. HistoryBristol-MyersIn 1887 William McLaren Bristol and John Ripley Myers decided to sink $5,000 into a failing drug manufacturing firm called the Clinton Pharmaceutical Company, located in Clinton, New York. The company was officially incorporated on December 13, 1887, with William Bristol as president and John Myers as vice president. In May 1898 came a new name: Bristol, Myers Company (a hyphen replaced the original comma after Myerss death in 1899 when the company became a corporation). The postwar depression prompted Bristol-Myers to jettison its ethical drug business and devote itself entirely to its specialties: its two big winners and a dozen or so assorted toiletries, antiseptics and cough syrups. Company headquarters was established in Manhattan, where it has remained ever since. And having shifted squarely into the consumer products arena, Bristol-Myers began advertising its products directly to the public. In 1924, gross profits topped $1 million for the first time in Bristol-Myers history. The companys products were on sale in 26 countries. At this point, the shares held by John Myerss heirs became available for sale, triggering a series of moves that turned Bristol-Myers into a publicly held company, listed on the New York Stock Exchange in 1929. In 1943, Bristol-Myers bought Cheplin Biological Labs, and quickly entered into the field of antibiotics. During the war, Bristol-Myers was a major distributor of penicillin and other types of antibiotics. By the end of the war, it was clear that penicillin and other antibiotics represented an immense opportunity for the company. Cheplin was renamed Bristol Laboratories, and Frederic N. Schwartz was put in charge of it. In 1957 Schwartz was appointed president and chief executive officer of Bristol-Myers when Henry Bristol chose to shed some of his former responsibilities and become chairman of the board. Reviewing the companys situation and prospects, Schwartz and then treasurer Gavin K. MacBain later Schwartzs successor as CEO decided that Bristol-Myers should embark on a program of acquiring well-managed smaller companies. The two executives first major move in that direction was to acquire Clairol. Within a dozen or so years after Clairol joined the company, a number of other acquisitions followed, including those of Drackett, Mead Johnson, Zimmer and Westwood. Population Genetics Lab Report EssayManagement/Human ResourcesBristol-Myers Squibb pertains to a centralized/pyramid management. A Board of Chairmen elect the officers of the company to serve out a term. The company is headed by a CEO, followed by a CFO, and so on. Assigned personnel are placed in individual aspects of the company and are put in charge of these divisions, only to answer to their superiors. Their international subsidaries are maintained by appointed personnel who control their subsidary, but also answer to a superior. Training and Development Training programs are conducted internally and externally throughout Bristol-Myers Squibb. Programs that are taught internally deal with competency, development, and coaching and feedback. Management programs taught internally are:Management Orientation-offers support, guidance, information, and opportunities to network and share with other new managers. Key Manager/Executive Integration-helps the transition into leadership rolesGlobal Leadership Development Program-Programs that help managers increase their effectiveness in meeting global challengesManagement Forums-facilitated by senior management to encourage information sharing and creative problem solving across divisional and functional boundariesExternal training is also encouraged at Bristol-Myers Squibb. Tuition Reimbursement programs are effective for all eligible employees, providing up to 100% of the cost of the class or classes attended. Compensation and RewardsCreative thinking is encouraged at Bristol-Myers Squibb. The company spends $1.6 billion on research and development each year to try to discover new medicines. Bonuses are awarded annually(and even quarterly in some instances) to employees who go beyond expectations. Stock options are given to every employee at the company through their program entitled TeamShare, although if performance levels are high, stock options become higher. Annual raises are also given to each employee, once again the amount raised in the employees salary all depends upon their performance. Once a year, the Presidents Award is given to the employee who has achieved the highest level of excellence in the company. One outstanding employee, nominated by their manager, is given a performance review by the company to compare with other employees in the same situation. The winner of the reward receives a cash prize. Labor Relations Bristol-Myers Squibb believes in good labor relation. Although all benefits for employees are only for non-unionized employees, the company makes it so that no union has a need to come about. Some programs enacted for the employees are:Competitive wages with other companiesAnnual bonusesAnnual raisesTeamShare program-allows employees the option of purchasing stoks from the companyAlthough no special labor laws are practiced in the company, Bristol-Myers Squibb does expect their employees to maintain the highest level of quality that is possible. Annual performance reviews are done on most of their employees, and on-the-job training is given to those who need the extra support. FinanceProfitability and Cash FlowIn 1998, Bristol-Myers Squibb recorded sales of $18.3 billion, about $1.5 billion more than 1997. Bristol-Myers Squibb finished with a gross profit of $4.3 billion. At the end of 1998, the companys market value exceeded $133 billion, making Bristol-Myers Squibb one of the top 15 publicly traded companies worldwide in terms of market value. FIVE-YEAR FINANCIAL SUMMARYOPERATING RESULTS(in millions, except per share amounts)1998 1997 1996 1995 1994 %0Business Reports